With the collapse of Bear Stearns, money is really on the mind. The economy has hit hards times before but these days it seems to be front page news, every day (save the random scandal to spice things up.) Ladies Who Launch money honey Galia Gichon gives cash-saving tips as the bad news wears on. And may I just say to all the women out there--do not panic! This is the time to make small adjustments and batten down a few hatches, but entrepreneur's who are reading...keep investing in your business and your brand. Hard times may come and go but what you've created can and will weather many a storm.
Amy Swift, Editor in Chief, www.ladieswholaunch.com
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Galia Gichon, New York City Incubator
Down-to-Earth Finance, www.downtoearthfinance.com
galia@downtoearthfinance.com
Recession Defensive Strategies for Women
With the recent news about Bear Stearns and their sale to JP Morgan
Chase, it is hard not to feel the jitters of the economy. You might not
be feeling the "recession" directly or maybe you are just reading about
it in the paper. However, there are many of you that are having a
harder time finding a job, or your mortgage payment has increased or
you are noticing your 401(k) statement has gone down considerably. It
can't hurt to implement some recession defensive strategies.
1) Hone your networking skills - regardless of your job or if you are
a stay-at-home Mom. This includes carrying business cards with you at
all times, attending more networking events (professional and business)
and taking advantage of social networking sites (like LinkedIn). Even
if you are not working, create a business card (you can get them for
free at Vistaprint!) with your contact information. A client recently
ran into an old colleague at the grocery store and is still kicking
herself that she did not have a card with her contact information.
2) I have worked with many women who have dogs and have splurged the
last few years on "doggy day care" and dog groomers. This luxury is one
of the first to go these days. Find a local high school student or
consider sharing dog-walking duties with a friend or neighbor. Also,
consider some of the expenses you might have with the dog, such as pet
insurance, monthly clothing allowance (yes for the dog), or organic
homemade premium dog food.
3) In terms of eating out, a big part of most budgets, many women are
electing to eat out at less expensive restaurants. It used to be the
norm to meet at the latest trendy restaurant but now many women are
focusing on keeping the total bill less than $30-40. If one of your
habits was to go out to lunch with everyone in the office, don't be
embarrassed to suggest the local diner instead of the gourmet sandwich
shop. I guarantee you are not the only one feeling the pinch and would
like to come home with more dollars in your wallet.
4) Pick one indulgence a week and put a dollar amount on it. Take a
hard look at your spending plan and designate a weekly dollar amount
you can afford that you can spend guilt free. It may be as little as
$25 a week or even $50 a month but assign a fixed dollar amount. Now
that you have that amount, you have permission to spend on indulgent
items or services; perhaps it is buying a new pair of shoes or treating
yourself to a massage. The key is only to do that one thing. If you
buy a new pair of shoes, don't shop at Whole Foods; there is always
next week. Prioritize your spending.
5) Stagger your beauty treatments. It sounds stereotypical but many
women break their budget on manicures, pedicures, haircuts, and color.
I am guilty of that as well. Especially as we have earned more money,
we have spent more in this department. It is hard to go cold turkey so
start staggering the treatments and consider inexpensive salons. Get a
manicure every 3 weeks, instead of every week, or find a less expensive
place to get your hair colored or pass on the pedicure until sandal
season is in full swing. I could not imagine not doing any of these
treatments but they can be spaced out and give my spending plan a
little more flexibility. I recently went to a much cheaper hair salon
for hair color. Nobody, including myself, noticed the difference. Also,
consider only paying cash. Even if you do not have credit card debt,
you will still spend less. That is a fact!
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Galia Gichon is the Founder of Down-to-Earth Finance. She provides
unbiased financial education and planning without selling any
investments. She has more than 14 years financial experience and is the
author of My Money Matters, a boxed set of financial affirmations,
instant money tips, and workbooklet. Please visit
www.downtoearthfinance.com and www.mymoneykit.com.